Every contractor is always on the search for ways to make more money, and boosting profits in your construction business can be accomplished through a variety of means. Incorporate the following strategies into your business in 2017 and reap the rewards.
You do great work, why not show it off? Humans are visual creatures, and if your website doesn’t detail photographic evidence of the projects you’ve completed, prospective clients will likely move on. Hire the services of a professional photographer and get solid shots of your most recent projects. The more you can show your skill, the better. Before and after photos are a great way to show the improvements you’ve made to any given project
If you haven’t heard of PACE programs, you’ve likely been missing out on a lucrative opportunity. PACE stands for Property Assessed Clean Energy, and was designed to help homeowners finance energy efficient and water conserving upgrades. PACE helps pay for new HVAC systems, insulation, windows, and much, much more. How does this relate to your business? Pace programs from companies like Renovate America empower homeowners with home financing to afford these energy efficient solutions. This enables homeowners that otherwise couldn’t afford the upfront costs of these upgrades to hire the services of local contractors. This is where your business comes in. Becoming a certified partner with a PACE program in your area means gaining access to a whole new demographic of customers.
When creating your timeline for a client, ask them about early completion incentives. Before signing that bid contract, settle on a date. When planning your actual working schedule, schedule your actual completion goal for that day and have your team understand the payment at stake. Upon completion, you’ll have an extra bonus, no sweat off your brow and no scrambling to complete construction.
If you pride your business on having a low accident rate, and you take extra measures to ensure safety on your jobsites, use that to your advantage. You don’t have to settle for bad worker’s compensation rates. Shop around; take a look at a variety of worker’s comp plans and determine which provides the best value. With low accident rates, you can generally haggle for better rates from different agencies.
Getting your business name out there is essential for attracting new clients. One of the easiest and most rewarding ways to do this is by getting involved with your local community. Whether you donate to a local organization or charity or sponsor a local children’s sports league, having your brand in the faces of local citizens can do wonder for your reputation and increase brand awareness.
Keeping your equipment in mint condition should be a priority, and it’s important to assess the times that call for new equipment. It can be hard to shell out the thousands of dollars required for equipment replacements, but in most cases, it’s more than worth the investment. This will help you streamline your work processes, and ensure your team is given all the tools necessary for completing their roles successfully. From heavy machinery to software upgrades, it’s important to upgrade all of your business equipment occasionally to ensure you’re increasing productivity. While many construction businesses have made the switch to equipment rentals, you may find this isn’t sustainable for your company. Thanks to high demand, equipment rental rates are on the rise. Work with a financial planner to determine whether the benefits and costs of renting equipment beat that of equipment ownership.
It’s hard to avoid bidding on every project that comes to you, but it’s important to examine your capabilities. Are you struggling with labor shortage? Do you have the ability to meet all of the project timelines currently on your plate? Never submit a bid unless you’re sure you can meet the demands; otherwise, you’ll likely accrue late penalties and sacrifice the extra profit.
Maintaining a successful construction business is hard work, but the right strategies can help you increase profitability. Consider employing these strategies in 2017 and increase your bottom line.